College for $99 a Month says "The next generation of online education could be great for students—and catastrophic for universities." (via 3quarksdaily).
Abi has more links and excerpts in Annals of online education and says:
internet will do to universities what they have already done to newspapers -- either decimate them or make their (commercial) life miserable.
these are early days, so expect a lot of experiments [I especially like the comparison -- I don't recall where I saw it -- with TV's early days when radio programs were beamed with a picture]."